Business Today: Shandong HaoHua Tire Invests $500 Million in Minh Hung Sikico Industrial Park
Binh Phuoc – Shandong HaoHua Tire is investing in a rubber tire manufacturing plant in the Minh Hung Sikico Industrial Park with a total capital of $500 million.
The lease agreement between the Minh Hung Sikico Industrial Park and Shandong HaoHua Tire was recently signed on September 8th. The HaoHua (Vietnam) tire manufacturing plant project is set to commence construction in Q1 of 2024, with equipment installation and trial operation beginning in Q1 of 2025, and full production starting in Q2 of 2025.
Upon completion, the factory is expected to have an annual production capacity of 14.4 million sets of tires, with an estimated annual output value of $770 million. The project will create employment opportunities for over 1,600 local residents.
The HaoHua (Vietnam) tire manufacturing project has been awarded an investment registration certificate by the Binh Phuoc Provincial People’s Committee on September 11th. This is also the largest foreign direct investment project in the province to date.
According to representatives from Shandong HaoHua Tire, the company has been conducting surveys to explore new investment locations in Malaysia, Thailand, Cambodia, Indonesia, and Vietnam since late 2022. After assessing risks, analyzing the environment, and evaluating investment locations, the company decided to choose Binh Phuoc, Vietnam as the place to build its first overseas automobile tire production project.
Minh Hung Sikico Industrial Park covers approximately 1,400 hectares, of which 655 hectares are currently being developed as phase one. The industrial park’s wastewater treatment plant is being jointly operated with GS E&C, a multinational corporation with over 50 years of experience in managing and implementing environmental projects.
Image: Khu công nghiệp Minh Hưng Sikico. Photo by Hoàng Huy
Minh Hung Sikico has attracted a series of multinational investors in various sectors, from high-tech industries to those generating significant waste and emissions. The industrial park has already reached nearly 50% capacity with 39 companies in just under 4 years.
Shandong HaoHua Tire is a member of the HaoHua Group (China), with over 20 years of development, manufacturing, and production of tires. It ranks 32nd among the top 75 tire brands in the world, with a production capacity of 20 million steel-belted tires and 4.8 million all-steel tires, amounting to an annual output value of approximately $1 billion. The company has 150 first-tier distributors and 6,500 second-tier distributors domestically and internationally, covering nearly 100 countries and regions.
Source: Business Today